The incorporation of artificial intelligence (AI) in video game creation gives rise to intricate legal and ethical issues at the nexus of technological advancement and consumer protection legislation. This article examines the nascent legal frameworks that regulate the deployment of AI in gaming, with a particular focus on two pivotal dimensions: the responsibilities of developers and the protection of creative rights. In light of Filipović's (2023) examination of AI in game development, this research identifies significant regulatory deficiencies in the current legal framework governing digital entertainment with regard to the implementation of artificial intelligence (AI). In this analysis, three key legal challenges are addressed: (1) the scope of developer liability for AI-driven player manipulation; (2) the legal obligations for transparency in AI-enhanced gameplay mechanisms; and (3) the establishment of accountability frameworks for emotional exploitation through affective computing. This article proposes a novel legal approach to balancing innovation with player protection by undertaking comparative legal analysis of existing digital consumer protection regulations and emerging AI governance frameworks. The findings of this research lead to the recommendation of specific legislative measures and industry standards which would serve to establish clear boundaries in relation to the implementation of AI technology, whilst simultaneously ensuring the preservation of creative freedom in the field of game development. The objective of the proposed recommendations is to establish a robust legal and ethical foundation for the responsible deployment of AI in gaming. This will enable the advancement of technology in a manner that protects consumer welfare.